Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Property Returns Reach Record Highs


Property Returns Reach Record Highs

The latest figures from the Investment Performance Index, the commercial property survey of the Property Council of New Zealand, show commercial property investors have received the highest return in the history of the index - 18.13% in the year to June 2005, well above the 14.62% investors earned on average for the previous year.

Returns from investing in New Zealand commercial property continue to improve, with almost all sectors showing a significant increase in total returns compared to June 2004 and some sectors experiencing their highest returns since the inception of this index, according to Property Council National Director Connal Townsend.

“While income returns remained steady at 9.49%, it is the strong increase in capital value that has driven the total return growth,” says Mr Townsend. “This is illustrated by the capital returns for each sector, ranging from 4.97% for New Zealand Bulk Retail to 12.72% for Wellington CBD Office,” he says.

Property Council Research chair, Alan McMahon, says that the overall capital return of 8.07%, reflects continuing confidence in the property sector. “Investors are optimistic about the performance of non-residential property. This confidence is well-founded, and is built on the back of strong occupational demand across all sectors”.

Wellington CBD office space was back on top as the standout performer this quarter, after falling behind the industrial sectors in March 2005. Its total return was an impressive 24.57% (up from 13.82% in June 2004).

This was driven by a very significant increase in capital return over the last 12 months, from 3.21% in June 2004 to 12.72% in June 2005. The Auckland CBD Office sector continued its recent rapid improvement to record a total return of 15.34%, up from 12.08% in June 2004.

The industrial sector maintained the significantly high returns achieved last quarter with NZ Industrial recording a total return of 22.78% (up from 13.75% in June 2004), and Auckland Industrial returning 22.41% (up from 13.66% in June 2004).

Of the four retail categories, both the ‘other retail’ (combined small shopping centres, small bulk retail outlets and strip retail) and ‘bulk retail’ categories experienced an increase in total returns over the last 12 months: ‘Other retail’ returning 20.55% (up from 17.76% in June 2004) and ‘bulk retail’ returning 14.69% (up from 14.16% in June 2004). This is the first time since December 2003 bulk retail has experienced a 12 month total return increase. Of the other categories, in the year to June 2005 ‘shopping centres’ returned 15.15 and the combined retail category returned 15.39%, compared with 19.87% and 18.70% respectively in June 2004.


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news